Pic @ Flickr Creative Commons
I’m in with the in crowd, I go where the in crowd goes
I’m in with the in crowd and I know what the in crowd knows
I’m in with the in crowd, I go where the in crowd goesI’m in with the in crowd and I know what the in crowd knows.
–Dobie Gray
We all want to be part of Dobie Gray’s in crowd, don’t we?
It’s a good feeling to be accepted and popular. Being popular improves our self-esteem and sense of value. We also feel we’re right in the decisions we make when the crowd agrees with us.
Does that extend to the stock market? According to a study published last week in the journal Current Biology, the answer is “you betcha.”
Read more…
Investing, Money, Online Investing AI, Success, US Economy
emotions, finance, fundamental, indicators, psychology, science of trading, sentiment, stock market, technical
pic by Hljod.Huskona @ Flickr
What is neuro-linguistic programming?
Neuro-linguistic Programming, or NLP as it’s more commonly known, is a psychological approach to improve mental performance. Practitioners say that an increase in physical and spiritual performance follows after you begin NLP training.
Basically–and probably a little too superficially put–NLP examines your self-talk and then offers ways to re-program this inner talk that is more aligned with achievement.
The question is: can NLP be used to improve your trading and investing performance?
According to Charles Faulkner of New Market Wizards, NLP can help traders and investors.
When we change those programs, just as when we change or upgrade software, we immediately get positive changes in our performance. We get immediate improvements in how we think, feel, act and live.
Turtle Trader explains that NLP fits in with the overall philosophy that trading skills are teachable.
Read more…
Great Books, Internet, Investing, Money, Online Investing AI
brain, mind, neuro-linguistic programming, nlp, psychology, trading, trading psychology, trend trading, turtle trading
Today I finished Rich Dad’s Advisors’ Guide to Investing In Gold and Silver
, witten by Michael Maloney. I think it is a really great book. It’s not one of those crackpot hype books like so many others on the subject. It is a very interesting and thoughtful historical analysis of why the price of gold and silver could explode. In fact, it explains why gold could reach $100,000 per ounce and silver could exceed $1,000 per ounce.
It sounds crazy, but the author’s argument is very simple and backed up by historical example. He says that every time a government creates its own currency, the currency eventually collapses. And, often times it leads to the end of the government.
Read more…
Great Books, Investing, Money, US Economy
currency, debt, gold, government, Investing, Money, psychology, rich dad, silver, Success
kevindooley@Flickr
Here’s the definition of irony: a statement or situation where the meaning is contradicted by the appearance.
But irony isn’t just a tool for writers at the Onion, or a literary device. It also exists in the world of finance. A trader’s stance to prove his or her correctness by sticking with an unsuccessful trade is perhaps one of the most common ways irony rears its head in finance and is another way humans are programmed to lose. It can be just as devastating as the other money-losing programs of greed and social proof that we talked about earlier this week.
It may sound impossible, but if you trace some of your decisions, you’ll probably find more than a few choices that you made–or didn’t make–were made because countering your previous stance would wound your pride. You were afraid to admit you were wrong.
When you trade, that obsession to be right has a cost.
Read more…
Automated Trading, Investing, Money, Online Investing AI, Success
correct, program, psychology, right, trading, wrong
After reading this great post at Bible Money Matters, it reminded me that the most important thing that we want to change is the way that we think. 90% of our thoughts today will be repeated tomorrow. And, the best way to change our finances it to change the way that we think about them.
The post talks about 5 things that millionaires do that helped make them rich. Most millionaires are self made, and it didn’t happen from winning the lottery. It happened through a specific way of thinking, and specific actions that they took to get rich. The interesting thing about these 5 things is that anyone can do them, regardless of their financial situation: Read more…
Investing, Money, Success
Investing, Money, poor, psychology, rich, thinking
This is the last post in the series. See the bottom of the post for the other nine posts.
90% of Financial Success Is Psychology
Have you ever looked at the list of the world’s wealthiest people? It seems that each person found a different way to get rich. Some people, like Bill Gates, did it by building a software business. Others did it through investing. Warren Buffett is a great example. Still others did it in different ways.
So that begs an interesting question. If there’s so many different ways of getting rich, what do they all have in common? The answer is, a certain way of thinking.
90% of financial success is determined by how you think. The remaining 10% is the specific strategies people use to get rich. Most people love to focus on strategy. They talk about who to hire, how to do marketing, or which properties are best to buy. But all of these strategies will only work if they are built on a certain mindset. And this mindset is the psychology of financial success.
Read more…
Investing, Money, Success
Bill Gates, education, financial industry, mindset, psychology, secrets, Warren Buffett, wealth
is one of my favorite financial books of all time. It's an allegory about a guy who has a terrible job, and how he overcomes challenges to achieve his dreams.
